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Breaking News: Bitcoin Outlook Post Fed's 0.25% Rate Cut: Historical Patterns And Predictions
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Breaking News: Bitcoin Outlook Post Fed's 0.25% Rate Cut: Historical Patterns And Predictions

Sentiment Check: Investors Add To Their Bitcoin Positions, $126M In Net Inflows

Reynaldo Marquez
Reynaldo Marquez
Last Updated: June 11, 2024 12:10 pm
2 mins read
bitcoin

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Bitcoin approaches a critical level of resistance as it was finally able to break its downside price action. The cryptocurrency stills face numerous headwinds if it wants to reclaim previous highs, but some clues point to potential short-term relief.

Related Reading | Ethereum Single-Day Liquidations Reach Three-Year High As Price Breaks $1,900

At the time of writing, the benchmark cryptocurrency trades at $31,400 with a 5% profit in the last 24-hours and a 6% profit in the past week. This has been one of the best trading sessions for BTC’s price in the past week and suggests a potential change in market sentiment.

Bitcoin BTC BTCUSD
BTC with minor gains on the 4-hour chart. Source: BTCUSD Tradingview

Meltem Demirors, Chief Strategy Officer at investment firm CoinShares, recently shared new data about the general sentiment across the market. As BTC’s price tumbled to $24,000, the sentiment has favored the bears.

However, CoinShares has recorded an increase in net inflows for publicly traded Bitcoin products. These investment vehicles saw $126 million in inflows last week alone and suggest investors have been turning more bullish.

Demirors said:

(…) with 2 consecutive weeks of net inflows across all crypto products, investors are buying the dip.

This uptick in BTC market sentiment contrast with the one recorded for Ethereum (ETH). The second crypto by market cap has been recording severe losses.

Investors seem to be fleeing to Bitcoin due to the uncertainty surrounding the macro-economic outlook, and uncertainty about the upcoming deployment of “The Merge”, Demirors said. This has been reflected in ETH investment products which have recorded their 9th consecutive week of outflows.

“The Merge” is the event that will combine Ethereum’s execution layer, ETH 1.0, with its consensus layer, ETH 2.0. The latter will be supported by the Proof-of-Stake blockchain or “Beacon Chain”. The event has been delayed on several occasions but seems to be making progress.

Bitcoin To See Some Short-Term Relief?

Overall, CoinShares noted, that digital asset investment products saw $100 million in inflows last week. The positive flow was not translated into the price action as most cryptocurrencies remain rangebound.

Additional data provided by Demirors highlights some movement in the options sector. Market participants took call (buy) positions as inflows increased, but since then turned back to “defensive hedging with puts on the later half of the week”.

These factors could contribute to a short-term relief for Bitcoin. Economist Michaël van de Pope supports this thesis. As seen below, he expects BTC’s price to re-test resistance at $34,000 if it is able to sustain its current momentum.

Bitcoin BTC BTCUSD
Source: Michaël van de Pope via Twitter

However, macro conditions still look unfavorable for Bitcoin and risk-on assets. As NewsBTC reported, any new narrative which points to worldwide economic recession and the likes could play in favor of the cryptocurrency and risk-on assets.

Related Reading | Bitcoin Bullish Signal: 1k-10k BTC Holders Have Been Buying Recently

This could force the U.S. Federal Reserve to slow down on its monetary tightening and provide risk-on assets with more breathing room.

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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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